Boeing to buy Spirit Aero in $4.7 billion deal after months of talks
A Boeing 737 MAX-10 lands over the Spirit AeroSystems logo during a flying display at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. REUTERS/Benoit Tessier/ File Photo
-Boeing said on Monday it would buy its struggling supplier Spirit AeroSystems in a $4.7 billion all-stock deal which was finalized after months of talks, as the aerospace giant tries to solve a full-blown safety and regulatory crisis that has engulfed its key supplier as well.
The total transaction value is about $8.3 billion, including Spirit's last reported net debt, Boeing said, adding that Spirit shareholders will receive 0.25 Boeing shares for each of their Spirit shares if the volume-weighted average price is at or below $149.
Airbus and Spirit have also entered into a binding term sheet under which Airbus will acquire certain commercial work packages that Spirit performs for Airbus concurrently with the closing of the Boeing-Spirit merger, it added.
(Reporting by Mike Stone and David Shepardson in Washington, Allison Lampert in Montreal and Shivansh Tiwary, Abhijith Ganapavaram and Shivani Tanna in Bengaluru; Editing by Arun Koyyur, David Gaffen and Matthew Lewis; Editing by Mrigank Dhaniwala)